Sunpower Group (5GD) H1 2025 earnings summary

Executive summary

• Revenue for Q2 2025 declined 11.2% year-over-year to RMB808.8 million, mainly due to price adjustments and lower construction service revenue from BOT projects.

• Net profit attributable to equity holders was RMB65.8 million for Q2 2025, nearly flat year-over-year; for the six months, net profit rose 13.2% to RMB138.0 million.

• Achieved a 2.4% year-over-year increase in steam sales volume to 5.82 million tons in 1H2025.

• GI recurring PATMI rose 5.7% year-over-year to RMB204.8 million, reflecting higher profitability.

• GI recurring operating cash flow surged 78.2% year-over-year to RMB295.2 million, driven by strong cash generation and improved receivables collection.

Financial highlights

• Six-month revenue fell 7.8% year-over-year to RMB1,601.9 million.

• GI recurring revenue declined 5.0% year-over-year to RMB1,571.7 million, mainly due to lower feedstock prices impacting industrial steam prices.

• Gross profit for six months was stable at RMB469.5 million; GI recurring gross profit increased slightly by 0.7% year-over-year to RMB470.2 million.

• GI recurring EBITDA was RMB537.2 million, down 2.2% year-over-year.

• Finance costs dropped 21.6% to RMB107.1 million for the half-year, reflecting lower interest on convertible bonds and optimized debt structure.

Outlook and guidance

• Management expects stable economic growth in China for 2H2025, with potential for a coal price rebound but limited upside.

• Policy support for direct green electricity supply in China is expected to boost electricity sales.

• The group will focus on AI-empowered energy services, expanding into renewable and alternative energy, and leveraging new government policies supporting direct green electricity supply.